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Home My WebLink AboutR-78-0268RFC/rb 4/18/78 RESOLUTION NO, 73-268 A RESOLUTION ACCEPTING THE ATTACHED BID OF PAN AMERICAN BANK IN THE AMOUNT OF APPROXI- MATELY $56,338,27 AS A CHARGE FOR BANKING SERVICES FOR THE CITY OF MIAMI FOR 3 YEARS BEGINNING JUNE 1, 1978; WITH SUCH SERVICE CHARGE TO BE PAID BY HAVING UNINVESTED BALANCES OF APPROXIMATELY $938,971.17 ON DEPOSIT WITH SAID BANK; WITH SAID REQUIRED UNINVESTED BALANCES FLUCTUATING DURING THE 3-YEAR PERIOD BASED UPON ACTUAL VOLUME OF SERVICES PERFORMED AND THE INTEREST RATE OF NEWLY -ISSUED TREASURY BILLS; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH SAID BANK IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SAID ATTACHED BID, WHEREAS, sealed bids were received March 31, 1978 for the CITY OF MIAMI BANKING SERVICES; and WHEREAS, the City Manager reports that the $56,338.27 bid of Pan American Bank is the lowest responsible bid and recom- mends that a Contract be awarded to said bank; and WHERIEAS, the bid process was engaged in by the City in conformity with Ordinance No. 8757 adopted on February 23, 1978; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The attached March 31, 1978 bid of Pan American Bank in the approximate amount of $56,338.27 as a charge for providing BANKING SERVICES FOR THE CITY OF MIAMI for 3 years, such amount to fluctuate based upon actual banking �v ce volume, "DOCU.MENT i[lE) ITEM NO. " o a is hereby accepted. Section 2. The aforesaid charge approximately $56 , 338. ] 7 is to be paid for by the City of Miami through its maintaining on deposit with said bank uninvested City moneys in the amount of $938,971.17, said amount on deposit to fluctuate based upon actual banking service volume and actual newly -issued Treasury Bill interest rates over the 3-year period, S U J +. ;1 1 , %/c' ,,. r• 78 968 Section 3. The City Manager is hereby authorized to enter into a Contract on behalf of the City of Miami with Pan American Bank for BANKING SERVICES FOR THE CITY OF HTAt1I for a 3-year period beginning June 1, 1978, in accordance with the I3ank's attached hid. PASSEL) A..) ADOPTED this 27 day of April 1978. Maurice A. Ferre MAURICE A. FERRI], MAYO R ATTEST: RA PH G.VONGIE, CITY CLERK PREPARED AND APPROVED BY: 4:11, 44:440t: ROBERT F. CLERK, ASSISTANT CITY ATTORNEY APP ::.1i ) AS TO FORM AND CO ' ECTNES S : GEORGE 'L KNOX, JR., CITY AT -2- «SUPPORTIVE DOCUMENTS FOLLOV'I„ 78268 Pfoj?osa1s fot BID SECURITY 'IP tanking SetVice City of Miami March 31, 1978 DATE BIM RECEIVED Mr, Gunderson MODER TYPE OP SECURITY AIAOUN T FOR ACCOUNTING USE 'Royal Trust Bank 627 SW 27th Ave. Miami, Florida Southeast First Nati Bank ,00 100 S. Biscayne Blvd. Miami,Florida . Barnett Bank of Miami 1201 Brickell Ave. Miami, Florida 33131 Tnterrnntinnpt 1l Banjo 930 Washington Ave. Miami Beach,Florida 33139 Central Bank & Trust Co. .1313 N.W. 36th Street Miami,riorida 3.3I41 Pan American Bank 250 SE 1st Street riiami, rlorida • "SUPPORTIVE DOCUMENTS FOLLOW C: Received she above described checks thl: day FOR ACCOUNTING PIMIQN ttE BID SECURITY ',An /IMM MO. i b// 3 /, ,. / % " MODER /4) (.(1 _ 2 7 rtP t OP tteURITT ")/1 _t L,t - )///i t !� • 7: )7( t l)/3 ?(2' 22 SA: ,Q C. e -� c- z,t( J __.E: t:C_ 3 AMOUNT PGA ACCOUNTINO Utt 2 (/ 2�-t.-et.ti`,� �"SUPPO, , , DOCI r� E �, ,It T 3 FOL.. O`i,, Received the QbovO irfCribad 0h0€k this cloy of FOR ACCOUNTING oww1S$oN 4 BID BASIS VARIABLE FIXED SAWING SERVICE DEPOSITORIES: f1/.; k,</c-4.,, CITY OF MIAMI, FLORIDA CONSOLIDATED BANKING SERVICES BID FORM ESTIMATED ANNUAL VOLUME Account Maintenance Checks Paid Checks Deposited Credits Posted Deposit Items Returned —Charged Back Deposit Items Returned - Resubmitted Wire Transfers - Incoming Wire Transfers - Outgoing Phone Calls - Balance Status OTHER SERVICES: Safekeeping,Custodian Safekeeping Custodian Check Sorting Magnetic Tape of Paid Items Paid Item Listing Fiscal Agent: Bonds Fiscal Agent: Coupons Letters of Credit: Each Account Letters of Credit: Each Drawdown Letters of Credit: Each Paid Item Retirement Plan Custodian Retirement Plan Custodian PENSION MAIN DEPOSITORY WORKMEN'S BENEFITS PAYROLL OPERATING ACCOUNT COMPENSATION 1 1 15,000 125,000 20 52 20 52 0 0 O 0 0 0 O 0 O 0 1 30,000 0 250 0 0 0 0 0 UNIT BASIS 1 0 200,000 900 1,000 1,000 400 500 0 OTHER ACCOUNTS TOTAL EXHIBIT Itt (REVISED) (1) BID CHARGE PER ITE""f EXTENSION ESTIMATED ANNUAL. CHARGES 1 4 8 $81.36 $ 650.88 10,000 1,000 181,000 .058. 10,564.25 52 100 200,224 .046 9,136.54 52 150 1,424 .18 256.90 O 0 1,000 .60 600.00 O 0 1,000 .60 600.00 O 50 450 2.40 1,080.00 O 0 500 3.60 1,800.00 O 240 240 1.20 288.00 $24, 9 i 6. 5/ 4...-- Each Security Traded - Book Entry Federal Reserve Each Security Traded/Actual Delivery Per 1,000 Paid Items Per 1,000 Paid Items Per 1,000 Paid Items Per Bond Redeemed, Matured Per Coupon Redeemed, Matured Per Letter of Credit Account Per Drawdown Per Paid Item Per Transaction Per Issue (2) 111 the 'bidding 'bank le unable to provide the designated banking service, then the wording. "NO SID" should be placed in this column. (2) These figures are for .overall estimation purposes, aims future bond Issue volumes are not known at able Ciao. (3) for iayro11, Vain Operating sod iiorksea'a Compensation accounts. TOTAL BID DEPOSITORY SERVICES ESTIMATED ANNUAL UNITS "SUPPORTIVE DOCUMENTS S FOLLOW" (1) BID CHARGE PER UNIT 1,000 $ 6.00 1,000 18.00 200 18.00 165(3) 6.00 12.00 165(2)1001.10 2,000(2) .25 EXTENSION ESTIMATED ANNUAL CHARGES $ 6,000.00 18,000.00 3,600.00 r 990 _ 0 0 1,980.00 110.00 500.00 3 36.00 108..00 75 9.00 677.001 150 .058 8.70 132 22.50 2 `970 .00 139 78.00 10,842.00 TOTAL BID OTHER GRAND TOTAL BID SERVICES $45,„783.70 $70,760.27 COMPENSATING BALANCE REQUIRED (Grand Total Bid Divided by .06) 1,179,338 L=; 8 Joseph R. Grassie City Manager ): t y.c-iiti.� -- Janes E. Gunderson Director of Finance April 14, 1978 Biddcd Banking Services One Resolution At the beginning of March, 1978, the Finance Department mailed a Request for Proposal for City of Miami Banking Services to officials of all 22 banks located within the City limits. 0n March 15, 1978, a pre -bid con- ference was held, with 18 officials representing 11 banks attending. As a result of that meeting, a Bid Specification Clarification and Amendment report was mailed on March 17, 1978 to those banking officials represented at the bidders conference. 0n March 31, at 11:00 a.m., the bid deadline, the Finance Department opened 12 proposals from 7 City of Miami banks. Those bids were evaluated by an evaluation committee composed of three Assistant Directors of Finance and myself. As a result of that evaluation, representatives from three of the best bidding banks were invited to City Hall for discussion. In the final analysis, the evaluation committee recommends the following be awarded: Banking Service A11 Checking Accounts** Investment Custodian** Letters of Credit--', Pension Plan Trustee' - Fiscal Agent") TOTAL Estimated Annual Cost' $31,547 24,000 792 6,854 275 $63,468 Name of Bank Pan American Bank Pan American Bank Pan American Bank Royal Trust Bank Royal Trust Bank „ Actual amounts wi1.1 fluctuate based upon volumes. To be paid for by maintaining compensating balances with an earnings factor equivalent to Treasury Bill interest rates. (1) Being evaluated by Pension Plan Board. The attached Resolution is to award the contract for checking accounts, investment custodian, and letters of credit to the Pan American Bank. The Pension Plan Trusteeship and the City's fiscal agent are being held in iisuppORME DOQRA.E-NI:S FO!LOW To: Joseph R, Grassie Re: Bidded Banking Services April 14, 1978 Page 2 abeyance until the Pension Plan Board has completed its review and evaluation, The low bidder was the Royal Trust Bank for these latter two banking services; however, the Pension Plan Board should make their recommendation before the City Commission is requested to act, Under the old rotating bank ordinance, a compensating balance of $65°,000 was required for just the main disbursement and depository account funds. Under this award, the City will receive payroll, workmen's compensation and safekeeping custodian services as well. The City heretofore did not have investment custodian services. Currently, the City places investments with numerous banks and dealers and each seller makes their own safekeeping arrangements, sending the City a copy of a safekeeping receipt. As a result, the City did not have control over its security transactions. Under the new system Pan American Bank will act at the City's custodian. As custodian, on investment purchases, they would not release monies until the security has been safekept; and con- versely, on investment sales, securities would not be released until monies had been received. Attached is the appropriate legislation to effect this recommendation. It is requested that this matter be scheduled for the agenda to be presented to the Commission on April 27, 1978. JCG:jr Attachment cc: George P. Knox, Jr., City Attorney (Attn: Robert F. Clark) Li D r,, A ,"o .t"r / ,_ i '1 Joseph R. Grassi.e City Manager antes E. Gunderson irector of Finance April 14, 1978 Biddcd Banking Services 0nc Resolution At the beginning of March, 1978, the Finance Department mailed a Request for Proposal for City of Miami Banking Services to officials of all 22 banks located within the City limits. 0n March 15, 1978, a pre -bid conference was held, with 18 officials representing 11 banks attending, As a result of that meeting, a Bid Specification Clarification and Amendment report was mailed on March 17, 1978 to those banking officials represented at the bidders conference. On March 31, at 11:00 a.m., the bid deadline, the Finance Department opened 12 proposals from 7 City of Miami banks. Those bids were evaluated by an evaluation committee composed of three Assistant Directors of Finance and myself. As a result of that evaluation, representatives from three of the best bidding banks were invited to City Hall for discussion. In the final analysis, the evaluation committee recommends the following be awarded: Banking Service Estimated Annual. Cost* Name of Bank All Checking Accounts** S31,547 Investment Custodian** 24,000 Letters of Credit`* 792 Pension Plan Trustee{t,' 6,854 Fiscal Agent V:' 275 TOTAL S63.468 Pan American Bank Pan American Bank Pan American Bank Royal Trust Bank Royal Trust Bankl~ ., Actual amounts will fluctuate based upon volumes. ^`• To be paid for by maintaining compensating balances with an earnings factor equivalent to Treasury Bill interest rates. I Being evaluates by Pension Plan Board. It might•be noted that under the old legislation of rotating banks, a com- pensating balance -of.) 650,000 was required just to pay the bank for._servicing a main disbursement and depository account. Under the.bidding arrangement, the City would be provided much More --banking services for only $850,000 at today's interest rates. 0f_the--S850,000 about-$250,000 of that compensating balance wi.l1 be__used 'to *pay for Investment Custodial services which the City -never had before. In addition, the bidding specifications will make "SUPPORTIVE E DOCUMENTS FOLLOW" To: Joseph R. Grassi° Re: Bidded Banking Services April 14. 1978 Page 2 use of—i hecki g accounts for computing ..omT,ttisating balances-mhot_just tl mai.n_disburseme11 and del o&ti 'y ccoutlt. funds Attached is the appropriate legislation to effect this recommendation. It is requested that this matter be scheduled for the agenda to be presented to the Commission on April 27, 1978. JEG:jr Attachment cc: George F. Knox, Jr., City Attorney (Attn: Robert F. Clark)